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Zoom Communications Q4 Earnings: EPS Beat, Revenue In Line As Company Continues Transformation Into 'AI-First Company'
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Zoom Communications Q4 Earnings: EPS Beat, Revenue In Line As Company Continues Transformation Into 'AI-First Company'
Feb 24, 2025 2:05 PM

Zoom Communications Inc ( ZM ) reported fourth-quarter financial results after the market close on Monday. Here’s a rundown of the report.

Q4 Earnings: Zoom reported fourth-quarter revenue of $1.18 billion, in line with analyst estimates. The communications company reported fourth-quarter adjusted earnings of $1.41 per share, beating analyst estimates of $1.30 per share.

Zoom has now met or exceeded analyst estimates on the top and bottom lines in ten consecutive quarters, according to data from Benzinga Pro.

Total revenue was up 3.3% on a year-over-year basis. Enterprise revenue was up 5.9% year-over-year, while online revenue fell 0.4% year-over-year. Zoom noted online monthly average churn was down 20 basis points to 2.8% in the quarter. Zoom ended the quarter with approximately 192,600 enterprise customers.

Net cash provided by operating activities was $424.6 million in the fourth quarter, up 20.9% year-over-year. Free cash flow came in at $416.2 million, up 25.1% year-over-year. Zoom ended the quarter with $7.8 billion in cash, cash equivalents and marketable securities.

“In FY25, Zoom AI Companion emerged as the driving force behind our transformation into an AI-first company, enabling our customers to discover enhanced productivity opportunities. As Zoom AI Companion becomes increasingly agentic, we look forward to continuing to help our customers fully realize the benefits of AI and discover what’s possible with AI agents,” said Eric Yuan, founder and CEO of Zoom.

See Also: US Lawmakers Demand EU Clarify Big Tech Regulations That ‘May Target American Companies’

Outlook: Zoom expects first-quarter revenue to be in the range of $1.162 billion to $1.167 billion. The company sees first-quarter adjusted earnings of $1.29 to $1.31 per share.

Zoom sees full-year 2026 revenue in the range of $7.785 billion to $4.795 billion. The company expects full-year adjusted earnings to be between $5.34 and $5.37 per share.

Zoom executives will further discuss the quarter on a call with investors and analysts set for 5 p.m. ET.

ZM Price Action: Zoom shares were down 2.25% after hours, trading at $79.27 at the time of publication Monday, according to Benzinga Pro.

Read Next:

Palantir Extends Losses, Microsoft Slides: What’s Driving Markets Monday?

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